Lufthansa reports sharply lower profits as fuel costs and strikes hammer German airline
Europe's largest airline group posted an 88% drop in net profit for the second quarter despite record revenue, citing soaring fuel prices and April labor strikes. The company has revised its 2026 outlook downward and announced operational restructuring.
A Quarter of Contradictions
Deutsche Lufthansa reported record second-quarter revenue but lower earnings as higher fuel costs, labor disruptions and aircraft-delivery delays weighed on results. Revenue rose 8% year over year to €11.1 billion in the second quarter, driven by higher passenger revenue despite a more than 3% reduction in capacity.
Yet behind the revenue growth lies a stark earnings collapse: Lufthansa Group said that the "primary drivers of the earnings decline were fuel costs" with costs rising to around €750 million in Q2 2026, and the company's net profit fell 88% in the second quarter, from around €1.01 billion in Q2 2025 to €123 million.
Strike Impact and Restructuring
The group's network airlines offered 3% less capacity in the second quarter than in the comparable prior-year quarter, with the decline attributable primarily to six strike days in April 2026. In response to rising costs, management has announced painful measures: the removal of Lufthansa CityLine's flight operations from the service offering and the early retirement of fuel-intensive long-haul aircraft such as the Airbus A340-600.
Narrowed Outlook
Lufthansa Group expects an Adjusted EBIT of between 1.7 and 2.2 billion euros for the full year 2026, considering the current kerosene price volatility.
What This Means for You
If you're planning to fly Lufthansa or its subsidiary airlines (Swiss, Austrian, Brussels), expect continued labor tensions and potential service adjustments. Ticket prices may remain high due to fuel surcharges. The retirement of older aircraft could eventually improve passenger experience, but in the short term, capacity constraints may limit flight options and drive up prices.
Sources
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